Asia Economics Update The Bank of Korea still has more work to do The Bank of Korea (BoK) lifted its policy rate by 25bp to 2.75% today, which was in line with our forecast but surprised the consensus. Policymakers have rightly become more focused on inflation and... 13th January 2011 · 1 min read
Asia Economics Update Bank of Thailand to continue tightening The Bank of Thailand (BoT) raised its policy rate by 25bp to 2.25% today, as expected. Growth is likely to pick up during the course of this year, and will be led by strengthening domestic demand and... 12th January 2011 · 1 min read
Asia Economics Update Sri Lanka goes for growth The Central Bank of Sri Lanka (CBSL) unexpectedly cut its two policy rates at today’s meeting. Inflation accelerated at the end of last year while the economic upswing is set to stay strong... 11th January 2011 · 1 min read
Asia Economics Update How will the floods in Australia affect the economy? The flooding in Queensland continues to devastate communities and businesses but it is still most likely that the impact on Australia’s economy as a whole will be relatively small and temporary... 11th January 2011 · 1 min read
Asia Economics Update Indonesia continues to manage capital inflows Indonesia has introduced more macro prudential measures to regulate the foreign liabilities of the banking sector. This is a sound strategy which will limit the extent to which any sudden change in... 6th January 2011 · 1 min read
Asia Economics Update To avoid crisis, policy in Vietnam needs to change soon The authorities in Vietnam continue to give mixed signals on what they will do in 2011. This should not be a big surprise ahead of the important National Party Congress which will take place next week... 6th January 2011 · 1 min read
Asia Economics Update Pakistan; just when you thought the situation could not worsen Political instability, which is never far away in Pakistan, has risen following this week’s assassination of the governor of Punjab province and the withdrawal of another party from the ruling... 5th January 2011 · 1 min read
Asia Economics Update The first Indonesia rate hike looks close Bank Indonesia (BI) left its reference rate unchanged today at 6.5%, as was universally expected. Nevertheless, the reference rate is now negative in real terms while inflation will probably... 5th January 2011 · 1 min read
Asia Economics Update Asia's industrial slowdown past its worst point The manufacturing PMIs for December, released yesterday and today, improved in Taiwan and Korea and stayed above 50 in India and Singapore. Industrial activity across the region should gain traction... 4th January 2011 · 1 min read
Asia Economics Update Expect another year of Singapore dollar gains Singapore data published yesterday and today showed Q4 GDP rebounded in q/q terms, residential property prices climbed too, while the December PMI also suggests that manufacturing will continue to... 4th January 2011 · 1 min read
Asia Economics Update New Zealand's recovery stumbles but should not stop Q3 GDP, published early today, was weak and in line with our below-consensus expectation. Nevertheless, most of the softness was due to temporary factors. The upswing will probably regain traction in... 23rd December 2010 · 1 min read
Asia Economics Update India's monetary policy tightening to resume soon India’s Reserve Bank (RBI) kept its repo rate unchanged today at 6.25%, as was widely expected. Nevertheless, the monetary policy tightening is not over. The upswing will stay strong in coming... 16th December 2010 · 1 min read
Asia Economics Update Korea-US trade deal good for both sides The amendments in the Korea-US free trade deal (KORUS) announced earlier this month have caused some protests in Korea, but the risk that the new arrangement is blocked by the National Assembly looks... 16th December 2010 · 1 min read
Asia Economics Update Sri Lanka’s upswing set to stay strong Data released today showed that Sri Lanka’s economy expanded at a slightly slower pace in Q3. Nevertheless, the outlook remains upbeat. The central bank (CBSL) left policy rates unchanged yesterday... 15th December 2010 · 1 min read
Asia Economics Update New Zealand set for a prolonged fiscal tightening The half-yearly Economic and Fiscal Update published overnight in New Zealand makes it clear that the May Budget will be a tough affair even though 2011 will be an election year. It is essential that... 14th December 2010 · 1 min read
Asia Economics Update Further Bank of Korea tightening only a matter of time The Bank of Korea (BoK) held its policy rate at 2.5% today, as expected. Nonetheless, the economy should regain momentum during the course of next year while inflation is likely to trend higher. The... 9th December 2010 · 1 min read
